Final answer:
The cost recovery deduction for Jasmine's factory building sold in 2019 would be a proportional amount of the annual depreciation based on the time the property was in service during that year. Since the property was sold early in the year, the deduction would be less than a full year's worth.
Step-by-step explanation:
The question Jasmine has asked pertains to the cost recovery deduction (often referred to as depreciation) for the year of the sale of a business asset, specifically a factory building. To calculate the cost recovery deduction for the year of the sale, one would generally use the IRS tables and guidelines for property of this type, which is often categorized as nonresidential real property and depreciated over a 39-year straight-line method. However, since Jasmine sold the building on February 2, 2019, and the property was in service since November 15, 1999, she would only be able to claim a fraction of the yearly depreciation based on the time the property was in service for the year of the sale.
If the annual depreciation is calculated (which is not provided in the data), Jasmine would take the proportionate amount from January 1, 2019, to February 2, 2019. Without the specific depreciation amount, we cannot calculate the value but it should be noted that the deduction would not equal an entire year's worth, hence options c and e can be excluded and without further context option a seems unlikely, leaving possible answers b or d, if we're to assume partial year depreciation is applicable.